•     f
      \
  UNITED STATES ENVIRONMENTAL PROTECTION A0ENCY
             'WASHINGTON, D..C. 20460      1

      •  .'     ••         ' •         •      i
             ,  MAR,,   1, 1995           I
                                                           'OFFICE OF
                                                      SOLID WASTE AND EMERGENCY
                                                           RESPONSE
MEMORANDUM

SUBJECT:


FROM:


TO:
OSWER Directiye-x9610.
Making in UST/Correct

Elliott P.
Assistant Adiai

Regional Administrate
            Regions I-X
                                              Use of Risk|-Based Decision-
                                              Action Programs
                           (/
      I  am pleased to provide the attached  copy ;of OSWER Directive
9610.17,  which encourages the use of risk-based; decision-making
in underground storage tank (UST) corrective action programs.  A
risk-based approach is consistent with the Administrator's
efforts to ensure that our environmental cleanup programs are
based on the application of sound science  and c-ommon sense and
are  flexible and cost-effective.                |
         ' , • .      •         "    -  ' •   •_•..'    : t          -
                                                 i     '       .
      EPA's regulations .for the UST corrective action program
already give States latitude to tailor their programs.   They do
not  specify cleanup levels or administrative procedures that
States  must follow.  They simply provide that State or local
cleanup programs must be protective of human heialth and the
environment.                                    !

      In other words, EPA's regulations allow States to make
choices about how they will design and conduct [their corrective
action  programs.  OSWER has long recognized and accepted the
.responsibility of helping States build corrective programs based
on these general principles.  That was the impdtus for a
directive on corrective action .streamlining issiued two years ago
and  is  the impetus for the directive on risk-bajsed decision-
making.  These directives are tools that Regional Offices can use
to help States build flexibility into their UST corrective action
programs.                                       j

      As presented in this policy statement, the use of risk-based
decision-making in UST corrective action programs is conceptually
and  operationally compatible with the CERCLA remedial and RCRA
corrective action programs, EPA's guidance on development of
                                                      Recycled/Recyclable
                                                      f"rlnted wlth Soy/Canola Ink on paper that
                                                      contains at least 50% recycled fiber

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 comprehensive State ground water protection programs, and the
 environmental justice and brownfields initiatives.

      OSWER's Office of Underground Storage Tanks (OUST)  has been
 working with Regional Offices and State and local UST programs
 TT?LS£me ^lme to Promote the use of risk-based decision-making.
 With the issuance of this directive, the Regional Offices now
 have tangible evidence of EPA's support of this approach and
 therefore should be able to promote it more effectively.  In
 addition, OUST will be working with the Regional Offices to help
 them use risk-based decision-making in UST corrective action
 activities on Indian lands.

      The policy statement includes a description of our  strategy
 for^helping State and local  UST programs implement  risk-based
 decision-making.   In cooperation with a committee of the American
 Society for Testing and Materials (ASTM),  a group whose
 membership includes both OUST and Regional Office staff  is
 planning a training program;  a number of States have already
 requested the training.                             "'•''•.'

 i    -,T5fmUSe °f risk-based decision-making could help state  and
 1°C31.UST. Programs  deal  with  UST releases  more  quickly and
 f^C1?ntly*   Glven that 34'000  UST  releases were reported in
 1994  alone  the need to  speed up the corrective action process is
 °?Vi°?!\  I1,h?pe  *  fan count  on  y°ur support of OSWER's  ongoing
 efforts  to help State and local  agencies streamline  their
 corrective action programs and introduce the use of  risk-based
 decision-making.
Attachment
cc:
UST/LUST Regional Program Directors
UST/LUST Regional Branch Chiefs
Regional Division Directors
ORC contacts
OSWER Office Directors
Assistant General Counsel, Superfurid Branch
OUST Management Team

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                            UnrtedSiites Environmental Protection Agency~j
                                   Washington. DC 204«0                i
                 OSWER Directive Initiation Request
                                     1. Directive Numb«r
                                      9610.17
                                   2. Originator Information
     Name of Contact Person
      Ivr  Auerbach
     May Coda
      5401 (W)
Office
 OUST
   Telephone Code
   703 308-8862
     3. Title
        Use  of Risk-Based Decision-Making  in UST Corrective Action
                                 Programs
     4. Summary of Directive (include brief statement of purpose)
      The purpose of this directive is  to  encourage UST implementing
      based decision-making in their corrective actionprograms and !"
      on the  application of this approach.
                                    agencies  to use risk-
                                  to provide  guidance
     5. Keywords
       Corrective action, risk, underground  storage tanks, UST imple
                                  meriting agencies
     6a. Does This Directive Supersede Previous Directive(s)'r
     b. Does It Supplement Previous Directive(s)?
                                            X  No
                                              No
                       Yes    What dn-ctive (number, title)
                       Yes    What directive (number, title)
     7. Draft Level
       X  A-SignedbyAA/DAA
B - Signed by Office Director
       C - For Review S
Comment
D - In Development
           8. Document to be distributed to States by Headquarters?
                                   X Yes
                              No
     This Request Meets OSWER Directives System Format Standards.
     9. Signature of Lead Office Directives Coordinator
      Shushona  Clark, OUST  Directives Cbordinator
                                     Date
     10. Name and Title of Approving Official
      Lisa Lund,  Acting  Director, OUST
                                     Date
    EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
  OSWER            OSWER
'E      DIRECTIVE         DIRECTIVE
                          OSWER
                                    DIRECTIVE

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     xvEPA
              United States
              Environmental Protection
              Agency
            Office of
            Solid Waste and
            Emergency Response
DfRECTIVE NUMBER: 9510.17
               TITLE: Use of Risk_Based Decision-Making in UST Corrective
                   Action Programs


               APPROVAL DATE:

               EFFECTIVE DATE:

               ORIGINATING OFFICE: Office of Underground Storage
                             Tanks
               SPINAL

               D DRAFT

                STATUS:
               REFERENCE (other documents):
 OSWER      OSWER      OSWER
TE   DIRECTIVE   DIRECTIVE   Dl

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                                                 OSWER Directive 9610.17
                                                 March 1, 1995

         USE OF RISK-BASED DECISIOl^^KING
        IN UST CORRECTIVE ACTION PROGRAMS

INTRODUCTION AND STATEMENTOFPURPOSE          i
   •             ."'•'-   '•.  '..       •'    '••••.'•   "'•-•.'.  j1
      As applied to corrective action at UST release sites, risk-based decisiori-making is a
process that utilizes risk and exposure assessment methodology to help UST implementing
agencies make determinations about the extent and urgency of corrective action and about the
scope and intensity of their oversight of corrective action by UST owners and operators.

      The primary purpose of this policy statement is to encourage ihe use of risk-based
decision-making as an integral part of the corrective action process at: sites where leaking
underground storage tank (UST) systems have released petroleum prcklucts into the
environment and thus created risks to human health and  the environment. In addition, this
policy statement provides guidelines to help UST implementing agencies develop and use
risk-based decision-making in a manner consistent with the Federal law and  regulations
applicable to UST corrective action. :Some State arid local'UST implementing agencies have
already taken steps to initiate the use of risk-based decision-making in .their  corrective action
programs. EPA plans to begin using risk-based decision-making where it implements such
programs—primarily on Indian lands^-and expects to work  with State jand local agencies to
help more of them initiate  or improve risk-based processes.        j
                            ' •  '                     '        ,!'_,,        ,  '
      Where risk-based decision-making is incorporated into the US^T corrective action
process, the result is usually called risk-based corrective action (RBOA).  The American
Society for Testing and Materials  (ASTM) recently issued  an emergency standard for risk-
based corrective action; the ASTM standard provides a detailed scientific and technical
framework that can be adapted by UST implementing agencies for use in their corrective
action programs. Thus, the ASTM standard constitutes  one possible jstarting point for  \
development of a process using the risk-based approaches  described in this policy statement.
Additional information about the ASTM standard appears later in this  document.

      Risk-based decision-making is consistent with EPA policies arid regulations governing
UST corrective action and  with the approaches being taken by other EPA programs involved
in protection of ground water and cleanup of environmental contamination.          ,
 '    -    •. '    ,'•    •    -     ;     '•.;..        '    '   .]•  . . ••   •;"'.- .. '•.
       • EPA's regulations dealing with UST corrective action [40 pFR Part 280] are
aimed at protecting human health  and the environment.  Under the regulations, UST
implementing agencies, including  EPA, are expected to  establish goals for cleanup of UST
releases based on consideration of factors that could influence humani and environmental
exposure to contamination. Where UST releases affect  ground water being used as  public or
private drinking water sources, EPA generally recommends that cleanup goals be based on
health-based drinking water standards; even in such cases, however, [risk-based decision-
making can be employed to focus corrective action and  guide UST implementing agencies'
oversight activities.                                  •  ,-.:'•  'j   -'..'••

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                                                      OSWER Directive 9610.17
                                                      March 1, 1995

        •, EPA's guidance on the development of Comprehensive State Ground Water
  Protection Programs (issued November 1992) urges States to take current and prospective
  uses of ground water, as well as relative risks to human health and the environment, into
  consideration when establishing goals for the remediation of contaminated ground water.
  Within this framework, EPA recommended that States use health-based drinking water
  standards as the remediation goal for ground water that is already used, or could reasonably
  be expected to be used, for drinking water. In all other cases, States can set cleanup goals
  based on aquifer priority and other site-specific considerations.

        »  In the Superfund program, risk-based decision-making plays an integral role in
  determining whether a hazardous waste site belongs on the National Priorities List.  Once a
  site is listed, qualitative and quantitative risk assessments are used as the basis for
  establishing the need for action and determining remedial alternatives.  To simplify and
  accelerate baseline risk assessments at Superfund sites, EPA has developed generic soil
  screening  guidance that can be used to help distinguish between contamination levels that
 generally present no health concerns and those that generally require further evaluation.

        • The Resource Conservation and Recovery Act (RCRA) Corrective Action program
 also uses risk-based decision-making to set  priorities for cleanup so that high-risk sites  ,
 receive attention as-quickly as possible;  to assist in the determination of cleanup standards;
 and to prescribe management requirements  for remediation of wastes.

 BACKGROUND

      ^ In the 1980s, to satisfy the need to start corrective action programs quickly, many
 UST implementing agencies decided to utilize regulatory cleanup standards developed for
 other purposes and apply them uniformly to UST release sites to establish cleanup
 requirements. With experience,  however,, it has become increasingly apparent that applying
 such standards without consideration of the  extent of actual or potential human and
 environmental exposure is an inefficient means of providing adequate protection against the
 risks associated with UST releases.  Similarly, UST implementing agencies have found that
 applying identical reporting and review procedures to the planning and conduct of all
 corrective actions is inefficient for them and for UST owners and operators.  These problems
 have become increasingly  serious as the number of UST release sites has multiplied.

       As of October 31, 1994, more than 270,000 releases  had been reported nationwide.
 Li 1994, 34,000 confirmed releases were newly reported.  The upcoming 1998 deadline for
 upgrading, replacing, or closing UST systems likely will increase that number; as owners
 and operators look at their tank systems to decide whether to upgrade, replace, or close
 them, they often will discover contamination not previously identified.

      Though the number of releases is, and will continue to be,  daunting, regulators have
made tremendous progress over the last six years.  All States and territories, as well as a

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                                                     OSWER Directive 9610.17
                                                     March 1, 1995
                                ',                               *
                                                               !
number of local governments, have corrective action programs employing a total of about
1,500 technical staff.  Nearly all corrective actions are undertaken by JUST owners and
operators with State and local oversight. Cleanups have been initiate^ at more than 209,000
sites (of the more than 270,000 at which releases have been reported); arid completed at more
than 107,000 of them.  In spite of this progress, UST implementing agencies face the
challenges posed by the more than 163,000 cleanups still underway.

       Forty-six States have established State financial assurance fundfs to help owners and
operators  satisfy the Federal statutory requirement for evidence of ability to pay the costs of
corrective action. These funds serve as both a mechanism for satisfying the Federal financial
responsibility requirements and a source of financial assistance to help UST owners pay for
corrective actions. While these funds together collect more than $1 billion dollars a year,
many are  beginning to face solvency issues as reimbursement requests increase.  Currently,
claims waiting to be paid exceed $1;3 billion. Unfortunately, when reimbursement is not
immediately available, corrective actions tend to slow down.
                                                               !
       To help UST implementing agencies deal with these challenges, EPA provides support
for streamlining  (i.e., simplifying and accelerating)  administrative and field investigation
processes; promotes the use of cleanup technologies that offer alternatives to traditional
excavation and landfilling (for soils) and pump-and-treat (for groundv/ater); and assists
States in building strong State assurance funds. EPA believes that risik-based corrective
action processes  are another tool that can facilitate UST implementing agencies' efforts to
move all sites forward expeditiously while still assuring protection of i human health and the
environment.  Taking risk into account is not a new idea. In November 1992, in its
guidance on streamlining of corrective action processes (OSWER Directive No. 9650.13:
Streamlined Implementation of UST Corrective Action Requirements)^ EPA described four
situations  in which risk factors could be taken into account in corrective action decision-
making. This policy statement builds on concepts articulated in that (document.

WHAT IS RISK-BASED DECISION-MAKING?

       Risk-based decision-making is a process UST implementing agencies can use to make
determinations about the extent and  urgency of corrective action and about the scope and
intensity of their oversight of corrective action by UST owners and operators.
                                                      ,  '      i  -         -   .     ''  ,  .
       The real value of risk-based decision-making lies in its potential to help UST
implementing agencies and UST owners and operators oversee/manage cleanups of UST
releases based on relative risks to human health and the environment!  In addition, risk-based
decision-making can provide a coherent decision-making  framework l;o help keep transaction
costs under control.  Thus, while risk-based decision-making can be as protective of human
health and the environment as other approaches, it offers a scientificjjlly sound and
administratively effective way to respond to the pressures for timely iaction at large numbers
of sites and efficient use of both public and private resources. It is important to recognize

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                                                      OSWER Directive 9610.17
                                                      March 1, 1995

  that risk-based decision-making is not intended to be primarily a money-saving tool, even
  though its use may save money in many cases. At high-risk sites (which account for only 20
  to 30 percent of all sites), risk-based cleanups could cost more than those based on other
  procedures for establishing cleanup goals.

        Risk-based decision-making is a mechanism for identifying necessary and appropriate
  action throughout the corrective action process. Depending on known or anticipated risks to
  human health and the environment, appropriate action may include site closure,  monitoring
  and data collection, active or passive remediation, containment, or institutional controls.  Li
  aU cases, the objective is the same, i.e., to ensure that adequate protection of human health
  and the environment is provided.  The availability of options such as allowing contamination
  to remain in place or using institutional controls to prevent exposure will depend on    '
  applicable State and local laws and regulations.                           '

  WHAT RISK-BASED DECISION-MAKING IS NOT

        There are a number of common misconceptions about risk-based decision-making.
 This section attempts to deal with several of them.

        » Risk-based decision-making is not just a means of identifying sites requiring no
 further action. Once an UST release is confirmed, the key decision to be made at all stages
 of the corrective action process is what action is required in order to protect human health
 and environmental quality. Only when it can be determined that all necessary risk-reduction
 action has been completed or alternative measures have been taken can a site be closed out.

        •  Risk-based decision-making is not just a means of identifying sites at which
 corrective action can be deferred.  EPA encourages UST implementing agencies to
 categorize sites for the purposes of identifying appropriate initial responses and providing
 guidance to UST owners  and operators on steps that will lead to timely completion of
 cleanup.  EPA does not support the use of risk-based decision-making to prioritize sites, if
 prioritization implies that some sites would receive attention/action while others are ignored.
 EPA encourages UST implementing agencies to ensure that UST owners and operators take
 action as promptly as possible at all UST release sites and to concentrate their own resources
 on conducting oversight of corrective actions at sites posing the highest risks. Prompt action
 at low-nsk sites may include determinations that monitoring or interim actions are necessary
 or that no active cleanup is necessary; a risk-based decision-making process can help make
 such determinations defensible.

       • Risk-based decision-making does not supplant the initial steps specifically
 required by EPA regulations to define site characteristics, contaminant levels, and actual or
potential exposures; indeed, in a risk-based process, these steps are critical. Likewise, action
to mitigate immediate threats to human health or the environment is required,  and a risk-
based process can help UST implementing agencies make timely determinations of the need

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F
^V                                                           OSWER Directive 9610.17
•                                     .                      March 1, 1995
•          .                    '       •••'-••        ^   ,      .[     •-       -    - --
•        for such action.  In addition, when establishing monitoring and reporting requirements,
•         remediation goals, and identifying alternatives to active remediation, a risk-based process can
•         provide more flexibility than traditional one-standard-for-all-sites approaches.
I            '              .               ..-..-       .      . '         i. -••..-'
I                • Risk-based decision-making does not require multiple studies of site
           characteristics, cleanup options, or other factors at all sites. In all cases, data collection
           and analysis need not be more elaborate or extensive man is necessary to provide
           scientifically and technically sound answers to the questions at hand—to perform an initial site
           assessment; to provide data needed for exposure assessment; to provide a basis for
           establishing cleanup goals.  For example, expedited site assessment involving the use of field
           measurements and geophysical techniques is consistent with risk-based decision-making, as
           long  as it provides the data that UST implementing agencies have determined are necessary
           to categorize sites or take other steps in the process.                j
                                                -                          i              "
                                     '•'..'                     '
           RELATIONSHIP TO ASTM STANDARD ON RISK-BASED COIRRECITVE ACTION

                 This policy statement lays out broad guidelines for the use of :jisk-based decision-
           making in UST corrective action programs.  A detailed framework fcjr taking risk factors
           into account in making corrective action decisions has been developed by ASTM and issued
           as an emergency standard entitled Guide for Risk-Based Corrective Action Applied at
           Petroleum Release Sites [ES-38-94].  The ASTM standard is an example of how risk-based
           decision-making can be incorporated into the UST corrective action pjrocess in  a manner
           consistent with this policy statement  EPA supported and participated in developing
           ES-38-94 and believes that its technical content is sound.            j
                                                         • .     .      -    i-    -
                 UST implementing,agencies need not use ES-38-94 in its entirety, but it may be a
           good starting point for the development of a risk-based process tailonsd to applicable State
           and local laws and regulatory practices. One limitation that UST implementing agencies
           must take into account when using ES-38-94 is that it deals exclusively with human health
           risks; there will, of course, be cases in which ecological risks have to be considered in
           establishing cleanup goals.                                       !
                                           ;    •                       '  I  •'   '   '    ,'  '
                 With support from EPA and other  organizations, the ASTM Subcommittee E50.01 on
           Storage Tanks,  which developed ES-38-94, is also developing tools ajnd a training program to
           help UST implementing agencies understand the concepts of risk-bas<;d decision-making and
           the ASTM standard.  Tools being developed include a set of step-by-|step worksheets,
           generic  training materials,  and an ASTM program to certify instructors who are qualified to
           provide training. EPA is committed to ensuring that quality training fis available to UST
           implementing agencies interested iri considering the adoption of a risk-based approach.


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                                       >   ,            OSWER Directive 0610.17
                                                      March 1, 1995

  WHERE AND HOW IN THE CORRECTIVE ACTION PROCESS
  CAN RISK-BASED DECISION-MAKING BE USED?

        Wherever there is a confirmed UST release, owners and operators must take action to
  prevent further releases, control emergency conditions (e.g., fire and explosion hazards),
  remove free product, if any, and perform a site assessment. UST implementing agencies
  should ensure that field measurements and/or laboratory analysis to determine the extent of
  contamination are appropriately used. Timely  collection of appropriate data during the site
  assessment is critical to successful utilization of risk-based decision-making. After the site
  assessment is completed, risk-based decision-making comes into play.  The principal-but not
  necessarily the only-uses of risk-based decision-making are described here.

        • To categorize or classify sites:  Comparison of contaminant levels at UST release
  sites with risk-based criteria can be used to place sites into categories for which there are
 prescribed initial response actions and/or subsequent steps in the corrective  action process.
 For each category, UST implementing agencies could direct owners and operators to proceed
 with cleanup according to an acceptable standardized approach. Thus, at low-risk sites, UST
 owners and operators often would not have to develop site-specific corrective action plans
 and often could take the prescribed steps without constant oversight by UST implementing
 agencies.  At high-risk sites, UST implementing agencies' policies regarding submittal of
 corrective action plans and oversight of UST owners' and operators' activities can be
 incorporated into the steps  specified for that category.  Such a process could make it possible
 for appropriate action to be taken in timely fashion at all sites.  EPA is not prescribing or
 recommending any particular categorization scheme. UST implementing agencies choosing
 to take this approach will need to develop their own.  The one included in the ASTM
 standard is a potential starting point.                    .                    ,   .

       • To aid in establishing cleanup goals: Risk-based cleanup goals can be either
 generic or site-specific. Generic goals based on conservative assumptions about factors that
 may influence human and environmental exposures can be developed for contaminants
 generally present at UST release sites. Such  generic cleanup goals can be designed to
 provide adequate protection of human health and the environment in the great majority of
 corrective action cases. Their use generally will cut down on site-specific data collection and
 analysis and thus expedite corrective action.  There are sites where it will be more cost-
 effective to gather site-specific data and set site-specific cleanup goals based  on exposure and
 risk assessment methodology. Where conditions are similar to those used to establish the
 applicable generic cleanup goals, site-specific goals may not be significantly  different, and
 the costs of the additional data collection and  analysis may negate any savings associated with
 site-specific goals.  UST implementing agencies also should consider the administrative costs
 of negotiating and overseeing the implementation of site-specific goals as  they design and
 develop a risk-based process.  EPA believes that a balance can be achieved between the costs
and benefits of employing such a process.

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                                                     OSWER Directive 9610.17
                                                     March 1, I,
       EPA believes that UST implementing agencies should have flexibility to implement,
or experiment with, risk-based decision-making in various ways reflecting their differing
regulatory mandates.  Risk-based decision-making can be phased-in tip allow time for needed
statutory or regulatory changes. Also, it can be implemented initially through pilot projects
to test or demonstrate its effectiveness.           ,                !
                                                               i       •        •    '
       EPA is willing to provide advice and assistance, as explained later in this policy
statement, but decisions on whether and how to proceed are solely within the province of
UST implementing agencies.  In all cases, of course, the process must provide adequate
protection of human health and the environment.  This section provides general advice on
ways to prepare for risk-based decision-making implementation.     j

       »  Building internal and external support: UST regulators,] tank owners and
operators, consultants, lending institutions, and environmental and community interest groups
all may have concerns about the use of risk-based decision-making in corrective action
programs. For example, where a risk-based process might lead to ajdecision  to leave some
contamination in place, mere may be concerns about liability for the [consequences of
possible future exposure  to such contamination.  To enlist the support of interested groups,
UST implementing agencies should explain their reasons for wanting! to move toward risk-
based decision-making and address concerns that such groups may hsiive.  Involving such
groups in deciding whether and how to use risk-based decision-making will be very valuable
in ensuring the long-term success of this approach.             '   \
                               - i                 .      '       i -
       ™  Up-front decisions: Decisions will need to be made about a range  of scientific and
technical, regulatory, and organizational issues.. For example, UST implementing agencies
 will have to define the criteria (or  screening levels) and data requirements for categorizing or
 classifying sites; decide which risk assessment, fate and transport, arid exposure models can
, be used in performing analyses; delineate procedures to be used in deciding upon cleanup
 requirements; and identify the circumstances, if any, under which IJST owners and operators

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                                                      OSWER Directive 9610.17
                                                      March 1, 1995

  will be allowed to use institutional controls or alternative compliance points.  UST
  implementing agencies will also have to make decisions on program management issues, such
  as where and when oversight and review will occur and how intensive they will be.
  Coordination with State funds may be a critical issue.

        • Simulations:  After designing a risk-based decision-making process, UST
  implementing agencies may find it beneficial to run several representative sites through the
  process. Such simulations-preferably using sites that have already gone through corrective
  action-may help UST implementing agencies identify problems that were not foreseen when
  the process was being designed and anticipate questions that UST owners and operators
  consultants, and contractors may  ask.                  .                           ''

        • Training:  Before implementing a risk-based decision-making process, and
 periodically thereafter, UST implementing agencies will have to  train their own staff
 members, as well as consultants and contractors frequently involved in  corrective action to
 ensure that they thoroughly understand the risk-based decision-making process and how it
 affects their work. Basic training in risk "and exposure assessment and  in the use of fate and
 transport models,  and in other scientific and technical areas may also be necessary*  Such
 training, as well as participation in dry-runs of the risk-based decision-making process will
 be extremely useful not only for UST regulatory staff, but also for consultants, contractors
 lenders, and other stakeholders.  Tank owners and operators may not need in-depth training
 but an overview of the risk-based decision-making process may be beneficial;  among other '
 things, it may help them oversee and interact with the consultants and contractors they hire to
 undertake corrective action at their facilities.
                                                         /             •
        • Evaluation: With implementation of risk-based decision-making, as with all
 improvement efforts,  it is important to be able to document and assess results.  For this
 purpose, UST implementing agencies should identify up-front the ways  in which they will
 measure the impacts of risk-based decision-making and ensure that appropriate data are
 collected. Developing such measures in advance and collecting real-time data  usually will
 make evaluations less costly and more useful than they otherwise would be and may enable
 UST implementing agencies to identify opportunities for continuing improvements.

 ENVIRONMENTAL JUSTICE CONSIDERATIONS

       Residents of low-income and minority neighborhoods may have disproportionately
 high health nsks from environmental pollution-often because many manufacturing and
 processing, waste treatment and disposal/and other commercial and industrial facilities are
 located in and around such neighborhoods.  EPA urges UST implementing agencies to ensure
 ffiat the cumulative health risks to people living in such areas are  taken into consideration in
 determining the extent and urgency of needed cleanups of releases from  UST systems  A
nsk-based approach should allow for consideration of these factors at appropriate points in
the corrective action process.

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                                                   OSWER Directive 9610.17
                                                   March 1, I!p95
                                      '          •      •        f   :.  •
REDEVELOPMENT OF CONTAMINATED SITES             j
                                          '                    [-
      Many former commercial arid industrial sites containing old or abandoned USTs are
being shunned by industries and developers.  Their reluctance to use |such sites is due in part
to uncertainty about their potential liability for cleanup of contariiinatiion and the perceived
imbalance between the value of such properties and potential cleanup j costs. Such sites often
are called brownfields-reflecting the appearance of vacant lots where; lack of interest in
cleaning up or reusing contaminated land has contributed to the geneiral deterioration of urban
areas. '••'.•'•••.       '                      ',"...'['••         '  '  '•

      Within EPA's Office of Solid Waste and Emergency Response (OSWER), a strategy
is being developed that will include actions dealing with UST-relatedjbrownfield sites.  This
strategy will outline measures to prevent sites where UST facilities aire located from
becoming brownfields and to facilitate assessment, cleanup, and reuse of sites already
contaminated by UST releases.  Prevention measures will include efforts to encourage
compliance with the upgrading, replacement, or closure requirements^ that take effect in
December 1998 and promulgation of a regulation dealing with lender] liability for cleanup of
contaminated sites.                                             >              ,

      UST implementing agencies can expedite assessment and cleaitiup of UST release  sites
through streamlining  of corrective action processes, development of strong State assurance
funds, and use of risk-based decision-making.  By using a risk-based; process that provides
for categorization of UST release sites, allows consideration of site-specific factors,  where
appropriate, and focuses attention on the highest risk siteSj States cant deal with brownfields
sites in a timely fashion and thus  encourage economic redevelopment!.  EPA will work with
other UST implementing agencies to carry out this strategy.         j

EXAMPLES OF STATES' USE OF RISK-BASED DEOSION-MtAKING PROCESSES
                                       N               .        I      '"''•'
       Attached to this policy statement is a description of several .examples of risk-based
processes already being used by State and local governments.  Whilej those described here
were developed independent of the ASTM standard, they are similarito it in many respects.
Some companies in the private sector also have developed such processes for their own use.

HOW EPA CAN HELP UST IMPLEMENTING AGENCKS    [
                            *"   .   '          "    •      ' '      •!  •  '.
       EPA'S Office of Underground Storage Tanks (OUST) and Regional Offices (ROs)
will play  an active role in promoting the development and implementation of risk-based
decision-making processes through information sharing and technical! assistance.  EPA
expects to offer support by funding peer matches through the Association of State and
Territorial Solid Waste Management Officials (ASTSWMO); coordinating training programs
with ASTM and the American Petroleum Institute (API); preparing zlnd circulating write-ups
of State and local experiences with risk-based decision-making; providing forums for

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                                                     OSWER Directive 9610.17
                                                     March 1, 1995

 discussions of risk-based decision-making at our national conferences; and providing targeted
 assistance similar to that being provided for corrective action streamlining.  Regional Offices
 will play a role in this effort by negotiating State Improvement Projects; coordinating and
 participating in training programs and targeted assistance projects.  State and local UST
 managers should contact EPA Regional Office UST program staff for answers to specific
 questions about risk-based decision-making or to determine who to contact for the answers.
                                                       (               -
       In implementing the UST program on Indian Lands, the Regional Offices will move
 toward incorporating risk-based decision-making into their corrective  action  processes.
 Doing so will enable the Regional Offices to use their resources more efficiently and gain
 experience that will improve their ability to  help other UST implementing agencies design
 and implement risk-based decision-making processes.

 CONCLUSION

       Cleaning up contamination from leaking UST systems poses tremendous
 administrative, financial, and technical challenges for UST regulators. To cope with these
 challenges and succeed in protecting human  health and the environment,  UST implementing
 agencies, including EPA, will have to employ a broad range of traditional and innovative
 approaches. This policy statement builds on our experience with corrective  action at leaking
 UST sites and continues EPA's support of innovative approaches  by encouraging regulators
 to adopt risk-based decision-making as an integral part of the corrective action process.  EPA
believes that risk-based decision-making will enable UST implementing agencies to simplify
and expedite their corrective action programs.
                                         10

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                                                    OSWER Directive 9610.17
                                                    March 1, 1995.
                                                                  ATTACHMENT A
        EXAMPLES OF STATES' USE OF RISK-BASED DECISION-MAKING
                    IN UST CORRECTIVE ACTION PROGRAMS
Texas',  • .              •           ,                  '     •      •['•'..
  . -,             .   •       • .    _ ,      ,           .             I
       Texas recently modified its corrective action program; its now risk-based in its
approach to prioritizing and remediating leaking UST tank sites. la Texas, risk-based  - - '  _
.corrective action refers to a case-by-case consideration of the actual or reasonable potential
for public and environmental exposure to contaminants in the determination of the timing,
type,  and degree of site remediation.  To implement the new risk-based corrective action
program, the Texas Natural Resource Conservation Commission created a new site
classification system and site assessment protocol, and adopted new procedures for
developing risk-based cleanup levels.  In addition, the Commission contracted for the     «
development of a guidance document on fate and transport modeling  tip support its review of
risk assessments reports.                                       •  'I

       Texas began the transition to a risk-based program by developing a new  site
classification system. Site classification is based upon site similarity to specific exposure
scenarios.  Sites fall into one of four classes. Class 1 sites represent :an actual or probable
impact to public health and safety and may require emergency abatement action or interim
containment measures. Class 4 sites pose no threat to the public or ttie environment.  Class
2 and 3 sites pose intermediate threats to public health and safety and) the environment.

       Site classification is determined by using the new Limited Site i Assessment (LSA)
protocol.  The purpose of the LSA is not to define the full lateral and, vertical extent of the
contaminant-affected area but to evaluate the degree of contamination I at the site, identify the
media affected, determine critical hydrogeologic properties, and identify receptors potentially
affected by the release.  Decisions on the urgency  of subsequent corixjctive actions are based
on site classification.                                           i
                                - ' •         ' - '          .          i?             '.      '
       Site cleanup levels are determined by the responsible party using one of two
established procedures.  Plan A is a conservative approach based on established default
 exposure assumptions and risk management considerations.  Plan A  generally requires less
 rigorous assessment and regulatory review;  UST owners  and operators therefore may be able
 to start site cleanup quicker.  Plan B  is a site-specific risk assessment! procedure which
 incorporates less default conservatism and allows for more site-specific considerations. Plan
 B typically involves more rigorous assessment and regulatory review jthan Plan A, but it may
 result in a more focused cleanup effort.  However, proceeding under jPlan B may require
 institutional controls (e.g.,  land use restrictions,  deed certifications)  tip ensure that exposure
 conditions do not change.  Plan A and Plan B are  analogous to Tier I and Tier  H in ASTM
 ES-38.
                                          Al

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                                                       OSWER Directive 9610.17
                                                       March 1, 1995
  Ohio
  ,OBO  x          developed corrective action rules that include a Site Feature Scoring System
  (SPSS) and risk-based action levels to assess corrective action sites.  Ohio developed a risk-
  based approach which uses four tiers of risk assessment.  The complexity of risk assessment
  increases from Tier I through Tier IV. The process initially uses conservative scenarios and
  assumptions; less conservative assumptions are introduced as additional1 site-specific data are
  provided to justify them.

        Based on data collected during an initial site check or assessment, the responsible
  party completes an SPSS form, which determines whether or not additional corrective actions
  are necessary.  If contamination is present at or below the action level, further remediation is
  not required at that time.  If the action levels are exceeded, additional corrective actions are
  necessary.

        As an alternative to Tier I (the SPSS action levels), Ohio also allows owners and
  operators to conduct risk assessments to determine whether clean-ups are necessary and to
  develop site-specific target cleanup levels. Tier H, a baseline risk assessment, uses
  conservative assumptions about pathways  and chemicals.  Tier m is a more detailed risk
 assessment and, if sufficient data exist, specific pathways (e.g., groundwater ingestion) may
 be eliminated in this tier.  Tier IV consists of a risk assessment with Monte Carlo Sensitivity
 Analysis.  This tier requires additional site-specific information to justify less conservative
 assumptions about pathways .and chemicals.

 Illinois

        On September 13, 1993, Illinois enacted new legislation governing UST corrective
 actions. The goals of the legislation are to protect human  health and the environment at the
 lowest possible cost, lower cleanup cost and reduce delays in reimbursement, provide for
 timely review and response, arid eliminate delay in remediation due to lack of funds
 Illinois' revised program incorporates risk in the site prioritization and review processes and
 in the development of site-specific cleanup levels.

       Site classification follows early corrective action activities; data obtained as part of
 early action can be used to classify sites.   Sites are classified as high priority, low priority
 or no further action based on five "triggering" criteria:  1.  physical soil classification- 2
 setback zone distance; 3. migratory pathways; 4. Class HI  groundwater distance; and  5 •
 surface water impact. If a site passes on all five criteria, it is  classified a no  further action
 site. If a site fails on criteria #2 through #5, it is classified a high priority site. If a  site
 fails on criteria #1, it can be classified as either a high or low  priority site depending on the
 results of groundwater monitoring.

      A licensed professional engineer must evaluate all five criteria.  UST owners and
operators can bypass  site classification by performing complete cleanup during the early
action phase; however, cleanup costs  beyond the early action minimum are not reimbursable
                                         A2

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          OSWER Directive 9610.17
          March 1, 1995
r
•       unless approved by the Illinois EPA.  Based on an early sampling of site classification
•       approvals, the Illinois EPA expects that 15-20 percent of reported incidents will be high
•        priority sites, 65-70 percent will be no further action sites, and the remainder will be low
•        priority sites.                                                    [            ,
I.     .     •  '       :   ..   ,/,."   •      • .'     •'•               '         I •' ' '   '- '•-    .' "'
I                Regulations implementing the new legislation were effective September 23, 1994.
[         These new regulations include remediation objectives for groundwateri and soil.
          Groundwater objectives apply to potable resource groundwater and are;-equal to Federal
          Maximum Contaminant Levels (MCLs).  Soil cleanup objectives are biased on a three-tier
          system with the goal of protecting groundwater. Tier I includes a Lobk-up Table that
          contains baseline numericalcleanup levels for six indicator contaminants. Tier n cleanup
          levels are determined based on equations using  site-specific parameters. Tier m cleanup
          levels are based on performance of risk assessments using formal methodologies (like the
          ASTM methodology set forth in ES-38) or common sense methods for situations where there
          are physical limitations (such as permanent buildings and/or highways).

          Hawaii                                                         j

                 Hawaii offers owners and operators three options for cleaning up contaminated soil
 ,         and groundwater to levels that are protective of human health and the environment Option 1
          allows owners and operators to clean up soil and  groundwater to levels established by the
          Department of Health.  Option 2 allows owners and operators to propjose alternative cleanup
          levels based on risk assessment.  Option 3 allows owners and operators to select exposure
          prevention management to eliminate existing exposure pathways.    j
            .       ' "   .-..'••    • '  '     -       '     ••';."    •     '   f ' .
                 Of the three available cleanup options, Option 1 is the simplest and most direct.  The
       '   Department of Health has established cleanup levels for soil and  grouitidwater with protection
          of human health and the environment as the ultimate goal;  The Department has attempted to
          establish protective levels that can be practically achieved by owners iind operators at many
          UST release sites. In cases where these criteria are impractical,  the lisk assessment option
          and the exposure management option are available to owners  and operators.

                 Where owners and operators propose to leave contamination in soil and water above
          the recommended.cleamip criteria and where complete exposure pathways do exist, the levels
          of  the contaminants left in-place must be supported by a site-specific, j quantitative risk
          assessment.  The risk assessment must conclusively, demonstrate  that |the levels of
          contaminant left in place do not pose a threat to human health and thei environment.  Because
          the preparation of a risk assessment involves numerous complex and time-consuming tasks,
          the Department recommends  that owners and operators not enter into:this process without
          fully considering all alternatives, including application of alternative types of technology to
          meet the recommended cleanup standards.                          j
       '                       .       -                     '               I1      -'      •
                 The Department offers owners and operators a third option, exposure prevention
          management, which relies on recognition of the lack of exposure pathways inherent to a site,
          or  alternatively, recognizes and relies upon the construction of man-n^ade barriers (such as
A3

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                                                       OSWER Directive 9610.17
                                                       March 1, 1995 ,

  asphalt or concrete pavements) to effectively eliminate existing exposure pathways.  This
  option is viewed as a temporary (non-permanent) cleanup option since the potential does exist
  for the evolution of exposure pathways in the future and because barriers to exposure
  pathways are not permanent.
                                                i            '',                  X
                                                ;
  Massachusetts                                 l

        Massachusetts redesigned its Waste Site Cleanup Program to streamline and accelerate
  cleanup of releases of oil and hazardous material to the envirbnment.   The previous program
  relied heavily on direct oversight of privately-funded assessment and cleanup actions. The
  redesigned program allows the private sector to take more responsibility for timely site
  assessment and cleanup and allows the Department of Environmental Protection to focus its
  resources on responding to emergency spills and on finding the worst hazardous waste sites
  and getting them cleaned up.

        A cornerstone of the new program is reliance on Licensed Site Professionals (LSPs),
  experts in assessment and cleanup, who are licensed by an independent state regulatory    '
  board.  LSPs are employed by UST owners and operators to oversee site assessment and
 remediation and to ensure that such actions are performed in compliance with the
 Massachusetts Contingency Plan (MCP).  By hiring an LSP, UST owners and operators pan
 proceed at most sites on their own and at their own pace.         '

        In the redesigned program, the Department receives notification of releases and
 threats of releases that exceed specific .thresholds. Releases  that have not been cleaned up
 within one year of notification must be scored using the Numerical Ranking System (MRS).
 The JNRS ranks sites using specific criteria and a scoring system based on the existing and
 potential risks posed by the site to public health, natural resources, and environmental
 receptors.  Generally, sites that score below 350 are Tier H  sites. Assessment and cleanup
 actions can proceed at these sites under the oversight of an LSP and without a Waste Site
 Cleanup permit  or approval.  Sites that score 350 or above,  as well as sites that are located
 within certain groundwater resource areas, are Tier I disposal sites.  These sites require a
 permit to proceed with further response actions.

       Response actions are complete when a condition of "no significant risk" of harm to
 health, safety, public welfare, or the environment exists or has been achieved.  This standard
 requires consideration of both current and reasonably foreseeable uses  of a site and its
 surrounding area. The MCP provides three options for defining alevel of "no significant
 risk" or "how clean is clean enough."  Method  1 uses clear numeric standards for more than
 100 common chemicals in soil and groundwater.  Method 2 allow for some adjustments in
 these standards to reflect site-specific conditions.  Method 3 allows cleanup requirement
 goals to be defined on the basis of a site-specific risk assessment.  With some limits, UST
 owners and operators can choose among these methods.

       At the conclusion of response activities, a Response Action Outcome Statement must
be filed with the Department to document the achievement of a permanent or temporary
                                          A4

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                                                     OSWER Directive 9610.17
                                                     March 1, 1SJ95
solution. Where it is not feasible to achieve a permanent solution, the MCP recognizes
where a temporary solution-a major milestone indicating that risks have been reduced, but a
"no significant risk" level cannot be maintained-can be achieved. The MCP also establishes
an "activity and use limitation" requiring deed restrictions or deed notices to inform future
property owners and users of certain limits on activities at a site, unkjss  additional response
actions are conducted.                                            t
                                                                ?
New Jersey                                                     i
                                       '         '.•'-•       •!  - ."
       New Jersey applies risk-based decision-making~based on assessments of current and
potential future risk~at sites where discharges of hazardous substance? have occurred.  The
process allows UST owners and operators to move forward in an expibditious manner with
minimal State oversight.                                          !
                                          '  •        -         '!•'"'•
       After the State receives the results of an initial site investigation or remedial
investigation, sites are ranked using the Remedial Priority Scoring (RPS) system.  The RPS
takes into account actual and potential exposure through air, surface water,  ground water,
and direct contact, as  well as fire and explosion hazards, biothreat, and  subsurface migration
of contaminants.  It reflects consideration of receptor distances, population density,
contaminant levels, toxicity, waste quantity, soil type, and aquifer uszige. UST cases are
assigned priority rankings based  on RPS scores.                    j

       The State's technical regulations specify the minimum requirements  for conducting
investigations and remedial actions; they also prescribe reporting fbrn|iats.  UST owners and
operators are allowed to use field screening methods for  soil and groundwater and to
undertake single-phased remedial actions (i.e., UST removals) at non[complex sites-instead
of sequentially performing  a preliminary assessment, site investigation, remedial
investigation, and remedial action. By following the technical regulations, UST owners and
operators receive a level of assurance that the work conducted without State oversight will be
accepted.                        '    .                           !

       Combining the technical regulations with the State's cleanup criteria and Groundwater
Quality Standards (GWQS) allows UST owners and operators to complete a consistent
baseline delineation of contamination to appropriate levels without haying to develop site-
specific cleanup numbers.  Soil Cleanup Criteria have been developed for 107 compounds;
most have residential and non-residential direct contact and impact-topgroundwater numbers.
The soil cleanup criteria were derived from Superfund risk assessment guidance and other
State and EPA data.  Soil with contamination below residential levels is considered
acceptable for unrestricted direct contact use.
                                                                j       •
        Since most groundwater in New Jersey is classified as potable aquifers, groundwater
delineation  to the GWQS is required. In areas not classified as "potable aquifers,"
 delineation  has to be  conducted only to check for possible impairment of existing
 groundwater uses, violations of  surface water quality standards, retea'ses of pollutants  to
 ground surface or buildings, and contaminant migration to potable aquifers.
                                                                '

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                                                     OSWER Directive 9610.17
                                                     March 1, 1995.

        Once soU and groundwater delineation are completed, a risk-based decision is made
  on the need for active or passive remediation.  This decision is based on the extent of
  contamination, proximity of receptors, and nature of exposure pathways.  Li many instances
  natural remediation of petroleum-contaminated groundwater is acceptable following source '
  removal (including any free product), where no receptors are at risk and conditions are
  conducive to natural attenuation.  Where soil contamination exceeds residential and non-
  residential direct contact cleanup criteria, contaminants may remain if appropriate
  institutional and engineering controls are applied to prevent current and future direct contact
  The levels of contaminants that can remain are determined on a site-by-site basis.

        UST owners and operators have the option of conducting a risk assessment in
  accordance with EPA guidance.  UST owners and operators conducting cleanups with their
  own funds have the option of completing cleanups to unrestricted levels to avoid the use of
 institutional controls.

                                 Reference Documents

 Risk-Based  Corrective Action for Leaking Storage Tank Sites.  RG-36, Texas Natural
 Resource Conservation Commission, January 1994.

 Risk Assessment Guidance Document For Risk Assessors and Project Managers-DRAFT
 Ohio Department of Commerce, Division of State Fire Marshal, Bureau of Underground °
 Storage Tank  Regulations, July 28, 1994.

 Technical Guidance Manual for Underground Storage Tank Closure and Release Response
 State of Hawaii Department of Health, Environmental Management Division, August 1992.

 The 1993 Massachusetts Contingency Plan - A New Cleanup Approach To Cleaning Up
 Disposal Sites. Department of Environmental Protection, August 12,-1993.

 The Illinois Leaking Underground Storage Tank Program:  A  Summary of Recent
 Developments, Illinois Environmental Protection Agency, October 1994.              -

 New Jersey Technical Requirements for Site Remediation.  NJAC 7:26E (Technical
 Regulations).

New Jersey SoU Cleanup Criteria.  In the April 1994 Site Remediation News.

Oversight of the Remediation of Contaminated Sites in New Jersey. NJAC 7:26C.
                                        A6

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